What is the effect of the Schedule in the Rider on the opening date of a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the Traditional 7 BREW Store (except that the required opening date is governed exclusively by the Schedule in this Rider, as provided in Section 3 above).
Furthermore, if we delay your (or your Approved Affiliate's) progress in satisfying your development obligations under the Schedule due to our failure to accept a proposed Traditional 7 BREW Store site (which is acceptable based on the criteria described above) in accordance with this Section 6, you provide written notice to us and give us at least ten (10) days to cure such delay, but we fail to cure such delay within that ten (10)-day period, then we agree that you have the right following the delay to adjust the Schedule unilaterally to add the number of days we delayed your progress to the opening deadline for each additional Traditional 7 BREW Store to be constructed and developed by you (or your Approved Affiliate) under the Schedule. (In other words, if we delayed your progress by sixty (60) days after you provided us written notice and an opportunity to cure (having failed to cure the delay within ten (10) days), you have the right unilaterally to add
sixty (60) days to each date in the Schedule that occurs after our failure to cure our delay, and such updated dates will serve as the "Schedule" afterward.)
YOU ACKNOWLEDGE AND AGREE THAT TIME IS OF THE ESSENCE UNDER THIS RIDER, AND YOUR RIGHTS UNDER THIS RIDER ARE SUBJECT TO TERMINATION, AS PROVIDED IN THIS RIDER, IF YOU DO NOT COMPLY STRICTLY WITH THE DEVELOPMENT OBLIGATIONS PROVIDED IN THE SCHEDULE AND FAIL TO CURE SUCH NON-COMPLIANCE WITHIN NINETY (90) DAYS AFTER RECEIVING WRITTEN NOTICE FROM US.
EXHIBIT A TO DEVELOPMENT RIGHTS RIDER
SCHEDULE
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Schedule in the Development Rights Rider primarily governs the required opening dates for Traditional 7 Brew stores. The franchise agreement's terms and conditions will generally control the construction, development, and operation of the 7 Brew store, but the opening date is specifically and exclusively dictated by the Schedule outlined in the Rider. This means that even if other aspects of the franchise agreement might suggest a different timeline, the Schedule in the Rider takes precedence in determining when the store must be open and operating.
If 7 Brew causes a delay in accepting a proposed site, the franchisee has the right to adjust the Schedule. Specifically, the franchisee can add the number of days of delay to the opening deadline for each additional 7 Brew store to be constructed under the Schedule. To do so, the franchisee must provide written notice to 7 Brew and give them at least ten days to cure the delay. If 7 Brew fails to cure the delay within that ten-day period, the franchisee can then unilaterally adjust the Schedule. For example, if 7 Brew delays progress by sixty days after receiving notice and failing to cure it within ten days, the franchisee can add sixty days to each subsequent date in the Schedule.
It is important to note that time is of the essence under the Rider, and the franchisee's rights are subject to termination if they do not strictly comply with the development obligations in the Schedule and fail to cure any non-compliance within ninety days after receiving written notice from 7 Brew. This strict enforcement underscores the importance of adhering to the Schedule and communicating promptly with 7 Brew regarding any potential delays or issues that may arise during the development process. The Schedule is included as Exhibit A to the Development Rights Rider.